Indiana lawmakers are poised to pass a much-talked-about roads funding plan that would increase gasoline taxes by 10 cents a gallon, pave the way for tolling and dedicate all money collected at the pump to roads by 2025.

The proposal would raise $1.2 billion annually by 2024 for state and local roads. Of that amount, $340 million would go to local governments.

The plan came together Thursday as lawmakers rushed to complete this year's legislative session by Friday or Saturday. It is one of about 60 measures lawmakers have left to act on before the session comes to a close.

GOP leaders in the Republican-dominated state legislature agreed to finance the road proposal by increasing the gasoline tax from 18 cents to 28 cents and hiking a diesel fee and a variety of vehicle registration fees.

They also agreed that tolling needs to be a part of the road-funding picture in the near future and would give Gov. Eric Holcomb an opportunity to seek tolls with approval from the state budget committee.

"We're in a situation where we need to either do something or be left behind," said Senate Leader David Long, R-Fort Wayne.

The main point of contention for lawmakers as they struggled to work out the road funding plan this week had been over whether all of the tax paid at the pump should go to road funding. The House pushed for all of the gas sales tax money to be shifted to roads even before this legislative session, but the Senate was reluctant.

Ultimately, legislative leaders agreed Thursday that the remainder of the sales tax will completely be phased out of the general budget by 2025 and shifted to road funding. That amounts to about $350 million per year.

The plan does not include a cigarette tax increase that House leaders wanted to use to replace the gasoline sales tax in the general fund. Instead, GOP leaders are banking on future revenue increases from economic growth.

"It’s a longer glide path than the House Republicans wanted, but that’s why we have a bicameral legislative institution," said House Speaker Brian Bosma, R-Indianapolis. "That’s how the founders set it up, so one group doesn’t make all the decisions."

The plan also implements an additional $15 yearly fee on all vehicles, a $150 fee on electric vehicles and $50 on hybrids.

Last year, House Republicans tried to pass a similar plan to raise money for roads, but they settled for a short-term funding plan after the Senate caucus refused to allow any tax increases.

Both Bosma and Long, however, said this year they couldn't "kick the can down the road" any longer.

"We are feeling very good especially about the historic investment in our state and local roads, the largest investment in our state’s history," Bosma said. "(We're) thrilled by that and it’s going to move Indiana really to the economic center of the Midwest."

Rep. Dan Forestal, D-Indianapolis, the ranking Democrat on the House roads committee, was not as supportive of the plan. He said the proposal is evidence of failed Republican leadership in recent years. The Republican-controlled General Assembly, he said, has limited revenue by cutting income taxes as well as taxes on corporations, financial institutions and inheritance in recent years

“If we had invested in roads instead of slashing taxes for corporations, we wouldn’t be raising taxes on everyone else now,” Forestal said.

The fiscally conservative Americans for Prosperity also issued a statement, saying it was disappointed in lawmakers' "tax hike now, fiscal responsibility later" approach. Of those who voted for a gas tax increase, 18 House members and five Senators previously had taken a pledge not to increase taxes.

Both chambers have to approve the final version before it's sent to the governor to consider. He has supported a long-term plan.

"I congratulate state lawmakers … for their plan that will strengthen our global reputation as the 'Crossroads of America,'" Holcomb said in a statement. "This plan provides the tools necessary to maintain what we have, finish what we started and invest in the future."